Is It Possible To Apply For a Personal Loan for New Join Employee in the UAE
There are various factors that banks or lenders consider while offering a personal loan in UAE, income and employment are one of them. These both are probably the most vital factors that qualify an individual for a consumer loan.
So, if you have just started a new job, it might be difficult for you to find a lender who is willing to invest in you.
You know, why?
Many lenders consider new employee risky, especially if you are into the current job for one or two months only as they value reliability and stability. But that does not mean that new employees can’t avail consumer finance.
There are few steps that you can follow as a new employee to improve your chances of getting consumer finance, and this article reveals what those steps are and how can they help you to avail a personal loan in UAE.
8 Tips to Increase Your Chances to Get Approved For a Personal Finance as a New Employee
Being a new employee with no previous work experience at your current employer, you must showcase your stability & reliability to the finance provider in some other manners. Following are some useful tips that will help the reduce the risk for the bank or lender and thus increases your chances of getting approved of your loan application as well as help you avail competitive personal loan interest rate:
Check Your Credit History
Apart from the income and employment status, credit history is one of the most important bank that lender consider before sanctioning a consumer loan. Thus, you should know your credit score before applying for it. Having a good payment record and having your ‘debt-to-income’ ratio low will depict that you’re financially responsible and enough reliable. In, in case, your credit score is poor, you can improve it by paying your credit card bills or any other existing loan repayment on time.
Wait to Apply
Probation period upon starting any new job is typically between three to six months. So if you have not an urgent requirement for personal finance, it would be really helpful for you to wait for that period and apply once you have successfully completed your probation period in that organization. Because your financial profile will be much stronger thus your chances of being approved of your loan application increase. By waiting until your probation period finish, you show the lender that you have a steady source of income.
Apply for a Lower loan Amount
The higher the loan amount you will apply for, the greater the risk for the lender. Thus, it is advised to apply for a lower loan amount to increase the chances of getting approved of your loan application. Since lenders tend to less hesitant to offer you a lower amount. However, if you earn a good monthly income and stay at a position for a significant amount of time, you can also apply for a high loan amount.
Let Your Employer Know
Banks or lenders verify the employment information by contacting your current employer. Thus, let your employer know in advance that you are applying for a consumer finance to speed up the process.
Contact the Lender Directly
If, in case, you have any sort of doubts regarding the terms & conditions and other requirements of a specific loan provider, don’t hesitate to contact them directly. You may be able to get a clear idea about their requirement in addition to the loan application and you can follow proper steps to get approved for a loan.
Meet the Other Minimum Requirements
Lenders have several other minimum requirements for approving a loan application that you need to meet such as minimum income requirement and a credit score. Before you fill out the finance application, make sure you meet these other minimum requirements.
Provide Supporting Documents
The key to avail a loan is to build trust with the lender. So, if you have any savings or assets, you can also provide that information along with your application. Doing this will help you to earn the lender’s trust that you can easily make the repayment of the loan on time. And if in case, you don’t qualify for the unsecured loan, a lender might be willing to offer you a PL using these as security.
What Other Factors Lenders Consider For Offering A Personal Finance?
Besides income and employment status, there are several other factors that also play a vital role in deciding whether you are eligible for a loan. Make sure you meet the below-mentioned eligibility criteria before applying for a consumer loan:
- Applicant’s Age: In order to be eligible for a personal loan, the applicant must be between 21 years to 60 years. However, the maximum age criteria for UAE Nationals can be up to 65 years.
- Credit History: Your credit history will have the biggest impact on your consumer finance eligibility. The personal loan interest rate, finance amount, and tenure you can borrow will depend on your credit history.
- Existing Credit: If you already have availed other credits or personal finance, your chances of getting a new loan will be lower than if you have no other credit to repay.
- Employment Type: Some PL providers offer consumer finance to applicant with any type of employment including they tend to offer a personal loan for self employed individuals or individuals who are earning a part-time income. However, some lenders offer PL to the applicant with full-time employment only. Thus, it varies from one bank to another.
- Company: The organization for which you are working will also affect your consumer finance eligibility. Working with a well-renowned company which has a good reputation in the market will make you someone with a stable job in the lender’s eyes. Thus, it will make you a safe bet for the PL provider.
Top 5 Banks Who Offer Consumer Loan for New Employees in the UAE
Every bank has its own criteria for sanctioning PL, some have minimum income requirements or require that the applicant has been working for some specific minimum length of service, while some lenders are inclusive in their conditions.
The below-mentioned table breaks down the income and employment requirements of the top 5 banks that offer personal finance for new employees in the UAE:
|Bank||Minimum Monthly Income Requirement||Minimum Full-time Employment|
|Noor Bank||AED 8000||No Minimum|
|HSBC||AED 7500||No Minimum|
|United Arab Bank||AED 5000||No Minimum|
|National Bank of Fujairah||AED 5000||No Minimum|
|Deem Finance Bank||AED 5000||No Minimum|
Being a new employee, it might be very difficult for you to opt for a personal loan in UAE since lenders consider new employee risky as they value consistent employment. However, there are several other factors to consider, and if you have maintained a strong financial profile and keep the above-mentioned points in mind, you will be able to avail consumer finance with ease.